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Thursday, 11/02/2023 8:49:06 AM

Thursday, November 02, 2023 8:49:06 AM

Post# of 432535
InterDigital Announces Financial Results for Third Quarter 2023
Company Release - 11/2/2023
New License Agreements Drive 22% Increase In YoY Revenue; 116% Increase In YoY Net Income
WILMINGTON, Del., Nov. 02, 2023 (GLOBE NEWSWIRE) -- InterDigital, Inc. (Nasdaq: IDCC), a mobile and video technology research and development company, today announced results for the quarter ended September 30, 2023.

"We delivered robust revenue growth in both the smartphone and CE and IoT markets, and upside to our financial targets in the third quarter driven by strong licensing activity, including an agreement with Lenovo for our HEVC video patents," commented Liren Chen, President and CEO, InterDigital. "This agreement highlights our progress in realizing value from our video compression IP, demonstrating that we have multiple avenues for driving growth across the business. With momentum across licensing, innovation and industry leadership, we believe the company has never been in a stronger position."

Third Quarter 2023 Financial Highlights, as compared to Third Quarter 2022:

GAAP

Total revenue was $140.1 million and increased 22% primarily due to catch-up revenues from two new patent license agreements signed in third quarter 2023.
Smartphone revenue was $104.3 million and increased 19%, and CE, IoT/Auto revenue was $35.4 million and increased 30%.
Recurring revenue was $104.5 million and increased 3%.
Operating expenses were $86.5 million and increased 4%, primarily driven by intellectual property enforcement.
Net income1 was $47.9 million and increased 116%; net income margin2 was 34%.
Diluted earnings per share1 was $1.72 and increased 132%.
Non-GAAP

Adjusted EBITDA2 was $83.5 million and increased 48%, primarily due to higher catch-up revenues; Adjusted EBITDA margin2 was 60%.
Non-GAAP net income3 was $57.7 million and increased 63%.
Non-GAAP diluted earnings per share3 was $2.13 and increased 81%.
Return of Capital to Shareholders

During the third quarter 2023, the Company returned $66.1 million to shareholders, including $9.3 million, or $0.35 per share, of cash dividends paid and $56.9 million through the repurchase of 0.7 million shares of common stock.
We announced an increase to the quarterly cash dividend from $0.35 to $0.40 per share, beginning with the dividend paid in the fourth quarter 2023.
Recent Business Highlights

Licensing: We signed new license agreements covering our HEVC video compression technology with Lenovo for smartphones and consumer devices such as PCs, and Humax for set top boxes.

We joined the Avanci 5G automotive pool as a founding member.

Convida Wireless, our joint venture with Sony focused on IoT and cloud services innovation, appointed a President and Chief Licensing Officer.
Research & Development: In Q3 we filed the highest number of new invention filings ever in a quarter and we are on track for a record year.

Our industry leadership in cellular standards was highlighted by the election of one of our senior wireless standards engineers to chair the RAN2 working group within 3GPP, the standards body that leads the development of 5G and future 6G standards.
Patent Portfolio: As a result of our innovation momentum our patent portfolio passed 30,000 granted patents and pending applications.

LexisNexis recently recognized InterDigital's 5G patent portfolio as one of the top five 5G portfolios in the world.
Near Term Outlook

The table below presents guidance of the Company's expectations for fourth quarter 2023. The revenue range covers existing licenses and does not include any new agreements we may sign over the balance of the fourth quarter.

Q4 2023
Revenue $102M - $106M
Operating expenses $77M - $79M
Net income1 $18M - $21M
Adjusted EBITDA2 $49M - $52M
Diluted earnings per share1(a) $0.70 - $0.80
Non-GAAP diluted earnings per share3(a) $1.17 - $1.29
(a) Based on 26.5M weighted-average diluted shares as of October 31, 2023 and does not factor in any additional repurchases that may occur during the remainder of fourth quarter 2023.

Conference Call Information

InterDigital will host a conference call on Thursday, November 2, 2023 at 10:00 a.m. ET to discuss its third quarter 2023 financial performance and other company matters.

For a live Internet webcast of the conference call, visit www.interdigital.com and click on the “Webcast” link on the Investors page. The company encourages participants to take advantage of the Internet option.

For telephone access to the conference call, visit www.interdigital.com and click on the “Dial In Registration” link on the Investors page. Registration is necessary to obtain a dial in phone number and PIN to join.

An Internet replay of the conference call will be available on InterDigital’s website under Events in the Investors section. The replay will be available for one year.
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